Question 1

Should accounting rules be revised to better account for socially responsible expenditures? Which rules?

Accepted Answer

The question of whether accounting rules should be revised to better account for socially responsible expenditures is a complex one, as it touches on the evolving role of businesses in society, the purpose of accounting information, and the interests of various stakeholders.

Socially responsible expenditures refer to investments made by companies in activities that have a positive impact on society, the environment, or both. These can include initiatives like community development, environmental conservation, employee welfare programs, and sustainable supply chain management, among others.

Currently, accounting standards generally require that expenditures be recorded based on their nature and the economic benefits they are expected to generate for the company. Socially responsible expenditures are often treated as expenses in the period they are incurred, which may not fully reflect their long-term benefits to the company or society.

There is a growing argument that accounting rules should evolve to provide a more comprehensive view of a company's performance, including its social and environmental impact. Here are some areas where accounting rules could be revised:

1. **Intangible Assets**: Socially responsible expenditures can create intangible assets such as brand reputation, customer loyalty, and employee satisfaction. Accounting standards could be revised to allow companies to capitalize some of these expenditures if they are expected to provide future economic benefits, similar to how development costs are treated for certain intangible assets.

2. **Reporting Frameworks**: The development of integrated reporting frameworks that combine financial and non-financial information could be encouraged. This would allow companies to report on how socially responsible expenditures contribute to their long-term strategy and performance.

3. **Disclosure Requirements**: Accounting standards could require more detailed disclosures about socially responsible expenditures, including their expected social and environmental outcomes. This would provide stakeholders with better information to assess the company's commitment to social responsibility.

4. **Measurement and Valuation**: Developing standardized metrics and valuation techniques for measuring the impact of socially responsible expenditures could improve comparability and reliability. This would involve significant challenges but could lead to more informed decision-making by investors and other stakeholders.

5. **Sustainability Accounting Standards**: Organizations like the Sustainability Accounting Standards Board (SASB) are working on creating industry-specific standards that help businesses identify, manage, and report on sustainability topics that matter to investors. Adopting and integrating such standards into mainstream accounting practices could be beneficial.

It's important to note that any changes to accounting rules should be made carefully to ensure that they meet the needs of all stakeholders, including investors, creditors, regulators, and the public. Additionally, such changes should enhance the relevance, reliability, and comparability of financial information, rather than introducing subjectivity or reducing transparency.

In conclusion, while there is a case for revising accounting rules to better account for socially responsible expenditures, any changes should be made within the broader context of improving corporate reporting and should be based on a consensus among the accounting profession, standard-setters, and users of financial statements.

Question 2

Rawls believed that:

Accepted Answer

A)  There should be perfect equality of resource allocation in society 
B)  Imperfect resource allocation benefits society because it encourages innovation and hard work 
C)  Resource allocation should resemble a normal statistical distribution, with most people concentrated around the median 
D)  Disproportionately greater resource allocations to some in society is acceptable as long as it results in a higher standard of living for those with lower incomes 
A)  There should be perfect equality of resource allocation in society 
B)  Imperfect resource allocation benefits society because it encourages innovation and hard work 
C)  Resource allocation should resemble a normal statistical distribution, with most people concentrated around the median 
D)  Disproportionately greater resource allocations to some in society is acceptable as long as it results in a higher standard of living for those with lower incomes D

Question 3

Do you believe that societal resource allocations based on Rawls' veil of ignorance should be widely adopted?

Accepted Answer

The concept of the veil of ignorance is a central feature of philosopher John Rawls' theory of justice, as presented in his seminal work, "A Theory of Justice." According to Rawls, when designing a just society, we should do so from an original position behind a veil of ignorance. This means that we should make decisions without knowing our own place in society – our class, race, gender, abilities, or personal preferences. The idea is that this would lead to principles of justice that are fair and impartial, as no one would be able to create advantages for their particular position.

The question of whether societal resource allocations based on Rawls' veil of ignorance should be widely adopted is a matter of philosophical and political debate. Here are some arguments for and against the adoption of this principle:

**Arguments for the adoption of the veil of ignorance:**

1. **Fairness:** The veil of ignorance is designed to promote fairness. Since no one knows their position in society, the principles agreed upon are likely to be just and equitable, as they do not favor any particular group.

2. **Social Stability:** A society built on principles that everyone could agree to from an original position is likely to be more stable, as its foundations are seen as legitimate and fair by all.

3. **Moral Consideration:** The veil of ignorance aligns with many moral intuitions about impartiality and the equal worth of all individuals. It encourages empathy by asking individuals to consider the perspectives of those less fortunate.

4. **Reduction of Inequality:** By focusing on the most disadvantaged, Rawls' difference principle (which is derived from the veil of ignorance) aims to ensure that any social and economic inequalities are arranged so that they are to the greatest benefit of the least advantaged.

**Arguments against the adoption of the veil of ignorance:**

1. **Practicality:** Implementing policies based on the veil of ignorance may be challenging in practice. Real-world politics are influenced by power dynamics, vested interests, and the complexities of societal structures.

2. **Diverse Values:** People have different values and conceptions of what a good life entails. The veil of ignorance assumes a level of consensus on principles of justice that may not exist in a pluralistic society.

3. **Incentives:** Some argue that the veil of ignorance might lead to a dampening of incentives for individuals to work hard and be productive if they believe that the fruits of their labor will be redistributed to achieve equality.

4. **Cultural Considerations:** The veil of ignorance abstracts away from cultural and historical contexts, which are important factors in shaping societal values and institutions.

In conclusion, whether Rawls' veil of ignorance should be widely adopted depends on one's perspective on justice, practicality, and the role of government in addressing inequality. Proponents of Rawlsian principles may argue that despite the challenges, striving for a society based on these principles is a noble and necessary pursuit. Critics, on the other hand, may contend that the application of the veil of ignorance is too idealistic and not feasible in the complex, real-world social order. Ultimately, the adoption of such a principle would require a collective societal agreement on the value of fairness and equality as guiding principles for resource allocation.

Question 4

Virtue ethics is principally concerned with:

Accepted Answer

A)  Ensuring that employees are loyal to their employers 
B)  Ensuring that partners are loyal to one another 
C)  Developing a person's character 
D)  Deterring breaches of trust without the need for imprisonment 
A)  Ensuring that employees are loyal to their employers 
B)  Ensuring that partners are loyal to one another 
C)  Developing a person's character 
D)  Deterring breaches of trust without the need for imprisonment

Question 5

Virtue ethics requires people to ask the following question of themselves:

Accepted Answer

A)  "How should I act?" 
B)  "Who should I be?" 
C)  "Did I make an error in judgment?" 
D)  "Did my decision optimally protect the rights of others?" 
A)  "How should I act?" 
B)  "Who should I be?" 
C)  "Did I make an error in judgment?" 
D)  "Did my decision optimally protect the rights of others?"

Question 6

Aristotle believed that:

Accepted Answer

A)  Unequals should be treated equally to ensure a just society 
B)  Unequals should be treated differently than equals, with unequals given just basic necessities for survival 
C)  Unequals should be treated unequally, with the relative difference in treatment being proportionate to the degree to which members of society are unequal 
D)  Unequals should be treated unequally, but fairness dictates that the amount sacrificed by the inferior party should be comparatively modest to ensure a tranquil society 
A)  Unequals should be treated equally to ensure a just society 
B)  Unequals should be treated differently than equals, with unequals given just basic necessities for survival 
C)  Unequals should be treated unequally, with the relative difference in treatment being proportionate to the degree to which members of society are unequal 
D)  Unequals should be treated unequally, but fairness dictates that the amount sacrificed by the inferior party should be comparatively modest to ensure a tranquil society

Question 7

The veil of ignorance illustrates the viewpoint that:

Accepted Answer

A)  Most people are woefully uninformed about the meaning of fairness 
B)  Justice should be applied blindly, without regard to a person's innate character traits, such as race or religion 
C)  Resource allocation decisions should be made as if a decision-maker did not know his or her eventual status, or lack of status, in life 
D)  Random distributions of societal wealth might well be superior to the system in effect in many societies today 
A)  Most people are woefully uninformed about the meaning of fairness 
B)  Justice should be applied blindly, without regard to a person's innate character traits, such as race or religion 
C)  Resource allocation decisions should be made as if a decision-maker did not know his or her eventual status, or lack of status, in life 
D)  Random distributions of societal wealth might well be superior to the system in effect in many societies today

Question 8

Should corporations be required to disclose in SEC filings their expenditures on improving and maintaining the environment?

Accepted Answer

The question of whether corporations sho

Question 9

Milton Friedman espoused the view that:

Accepted Answer

A)  A corporation's sole duty is to make money, regardless of the means utilized 
B)  A corporation should sacrifice profit maximization if doing so is necessary to comply with legal mandates 
C)  A corporation has a compelling obligation to engage in socially responsible activities, even at the sacrifice of profits 
D)  All of the above 
A)  A corporation's sole duty is to make money, regardless of the means utilized 
B)  A corporation should sacrifice profit maximization if doing so is necessary to comply with legal mandates 
C)  A corporation has a compelling obligation to engage in socially responsible activities, even at the sacrifice of profits 
D)  All of the above

Question 10

Accounting staff members at a major corporation received an all-expense paid vacation to Hawaii from a hedge fund trader. In return, they shared company earnings results with a hedge fund trader two days prior to the public release of these results. The accounting staff members' actions are consistent with:

Accepted Answer

A)  Deontology 
B)  Egoism 
C)  Virtue ethics 
D)  No recognized philosophy 
A)  Deontology 
B)  Egoism 
C)  Virtue ethics 
D)  No recognized philosophy

Question 11

If a firm engages in activities that simultaneously are profit-optimizing and socially responsible:

Accepted Answer

A)  Economists that adopt the stakeholder theory, but not the shareholder theory, will agree with its conduct 
B)  Economists that adopt the shareholder theory, but not the stakeholder theory, will agree with its conduct 
C)  Economists uniformly will criticize its claims of social responsibility as being highly unlikely, if not impossible 
D)  Its behavior is commendable in accordance with both the shareholder and the stakeholder theories 
A)  Economists that adopt the stakeholder theory, but not the shareholder theory, will agree with its conduct 
B)  Economists that adopt the shareholder theory, but not the stakeholder theory, will agree with its conduct 
C)  Economists uniformly will criticize its claims of social responsibility as being highly unlikely, if not impossible 
D)  Its behavior is commendable in accordance with both the shareholder and the stakeholder theories

Question 12

What broad categories of acts do you consider to be acts of Corporate Social Responsibility?

Accepted Answer

Broad categories of acts that are consid

Question 13

Identify a corporate project that exemplifies corporate social responsibility and explain your rationale.

Accepted Answer

One corporate project that exemplifies c

Question 14

A public opinion poll concluded that rich people tend to favor a lower estate tax on wealth, while poor people tend to favor a higher estate tax. This finding:

Accepted Answer

A)  Is consistent with the veil of ignorance, which Rawls contends makes rich people irrational 
B)  Shows why policy-makers would tend to evaluate decisions more objectively by applying a veil of ignorance 
C)  Is a classic, real-world example of the veil of ignorance in action 
D)  Is a prime example of Aristotle's view of how unequals should be treated 
A)  Is consistent with the veil of ignorance, which Rawls contends makes rich people irrational 
B)  Shows why policy-makers would tend to evaluate decisions more objectively by applying a veil of ignorance 
C)  Is a classic, real-world example of the veil of ignorance in action 
D)  Is a prime example of Aristotle's view of how unequals should be treated

Question 15

Rawls believed that society should strive for:

Accepted Answer

A)  Equality of resource allocation among all 
B)  Equality of resource allocation among the most productive members of society 
C)  Inequality of resource allocation at birth, to spur hard work and innovation 
D)  Variability in resource allocation, which he called the difference principle 
A)  Equality of resource allocation among all 
B)  Equality of resource allocation among the most productive members of society 
C)  Inequality of resource allocation at birth, to spur hard work and innovation 
D)  Variability in resource allocation, which he called the difference principle

Question 16

A student enrolled in your class has dyslexia. As a result of this learning disability, he reads slowly. The university has agreed to give this student more time to take a test that customarily is allotted to other students. Evaluate this decision in the context of Aristotle's view on distributive justice.

Accepted Answer

If student is viewed as an "unequal," he

Question 17

The disclosure of conflict minerals in SEC filings is historically significant because:

Accepted Answer

A)  The Dodd-Frank Act revolutionized depletion accounting rules for natural resource properties 
B)  Investors now will be better able to evaluate the risks of firms that are highly dependent upon minerals from war-torn areas of the world 
C)  Investors receive superior information that better enables them to hold companies accountable if they engage in socially irresponsible behavior 
D)  Investors now will be better able to evaluate the foreign currency risks to which global corporations are subject 
A)  The Dodd-Frank Act revolutionized depletion accounting rules for natural resource properties 
B)  Investors now will be better able to evaluate the risks of firms that are highly dependent upon minerals from war-torn areas of the world 
C)  Investors receive superior information that better enables them to hold companies accountable if they engage in socially irresponsible behavior 
D)  Investors now will be better able to evaluate the foreign currency risks to which global corporations are subject

Question 18

"Triple bottom line" accounting emphasizes the measurement of a company's:

Accepted Answer

A)  Net Income, Net Cash Flow, and Net Capital Expenditures 
B)  Corporate spending on the "three C's" of charitable, civic, and cultural causes 
C)  Profitability, environmental sustainability practices, and employee welfare 
D)  Payments of taxes for the public interest, payment of wages to worker-stakeholders, and profits for shareholders 
A)  Net Income, Net Cash Flow, and Net Capital Expenditures 
B)  Corporate spending on the "three C's" of charitable, civic, and cultural causes 
C)  Profitability, environmental sustainability practices, and employee welfare 
D)  Payments of taxes for the public interest, payment of wages to worker-stakeholders, and profits for shareholders

Question 19

Under the viewpoint of virtue ethics, which of the following is not a commonly recognized virtue?

Accepted Answer

A)  Loyalty 
B)  Trustworthiness 
C)  Independence of thought and action 
D)  Courage 
A)  Loyalty 
B)  Trustworthiness 
C)  Independence of thought and action 
D)  Courage

Question 20

Which of the following is, or are, commonly accepted definitions of CSR?

Accepted Answer

A)  A corporation fully complies with all applicable laws and regulations 
B)  A corporation engages in activities that are both socially responsible and profit-enhancing 
C)  A corporation engages in activities that are socially responsible, even if they are not profit-enhancing 
D)  All of the above 
A)  A corporation fully complies with all applicable laws and regulations 
B)  A corporation engages in activities that are both socially responsible and profit-enhancing 
C)  A corporation engages in activities that are socially responsible, even if they are not profit-enhancing 
D)  All of the above

Should accounting rules be revised to better account for socially responsible expenditures? Which rules?

Rawls believed that:

Do you believe that societal resource allocations based on Rawls' veil of ignorance should be widely adopted?

Virtue ethics is principally concerned with:

Virtue ethics requires people to ask the following question of themselves:

Aristotle believed that:

The veil of ignorance illustrates the viewpoint that:

Should corporations be required to disclose in SEC filings their expenditures on improving and maintaining the environment?

Milton Friedman espoused the view that:

If a firm engages in activities that simultaneously are profit-optimizing and socially responsible:

What broad categories of acts do you consider to be acts of Corporate Social Responsibility?

Identify a corporate project that exemplifies corporate social responsibility and explain your rationale.

A public opinion poll concluded that rich people tend to favor a lower estate tax on wealth, while poor people tend to favor a higher estate tax. This finding:

Rawls believed that society should strive for:

The disclosure of conflict minerals in SEC filings is historically significant because:

"Triple bottom line" accounting emphasizes the measurement of a company's:

Under the viewpoint of virtue ethics, which of the following is not a commonly recognized virtue?

Which of the following is, or are, commonly accepted definitions of CSR?

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Why We Cheat

Greed, Corruption, and Collusion

Fraud and Earnings Management

Discreditable Acts: Discrimination, Deceit, and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners, Trustees, and Executors

Duties in the Accounting Workplace Online Only

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Exam 4: Virtue, Justice, and Social Responsibility

Should accounting rules be revised to better account for socially responsible expenditures? Which rules?

Rawls believed that:

Do you believe that societal resource allocations based on Rawls' veil of ignorance should be widely adopted?

Virtue ethics is principally concerned with:

Virtue ethics requires people to ask the following question of themselves:

Aristotle believed that:

The veil of ignorance illustrates the viewpoint that:

Should corporations be required to disclose in SEC filings their expenditures on improving and maintaining the environment?

Milton Friedman espoused the view that:

If a firm engages in activities that simultaneously are profit-optimizing and socially responsible:

What broad categories of acts do you consider to be acts of Corporate Social Responsibility?

Identify a corporate project that exemplifies corporate social responsibility and explain your rationale.

A public opinion poll concluded that rich people tend to favor a lower estate tax on wealth, while poor people tend to favor a higher estate tax. This finding:

Rawls believed that society should strive for:

The disclosure of conflict minerals in SEC filings is historically significant because:

"Triple bottom line" accounting emphasizes the measurement of a company's:

Under the viewpoint of virtue ethics, which of the following is not a commonly recognized virtue?

Which of the following is, or are, commonly accepted definitions of CSR?

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Why We Cheat

Greed, Corruption, and Collusion

Fraud and Earnings Management

Discreditable Acts: Discrimination, Deceit, and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners, Trustees, and Executors

Duties in the Accounting Workplace Online Only

Filters